The Russellville City Council was informed Tuesday that sales tax revenues are down for the year, continuing a growing trend among the city and Pope County.

Jerrold McKaughan, director of finance for the city, told the council at its agenda preparation meeting as of April 30, the city’s general fund sales tax revenue is down $67,619.21 from what was generated at the same time last year. Though the city budgeted for less sales tax revenue for 2012 than what was earned in 2011, the city is still under what was forecast.

Last year, the city earned $7,641,726.75 from the general fund sales tax. This year, the city budgeted $7.54 million and year-to-date was projected to have earned $2,513,333.33. So far, revenue this year has fallen short $91,295.47 when compared to the 2012 budgeted amount of $2,422,037.86.

While the first four months of the year saw sales tax revenue fall short of its budgeted amount, the city and Pope County alike took their biggest hits in April, which accounts for sales tax generated in February.

In Pope County, which provides 45.21 percent of its generated sales tax revenue to Russellville, revenues were down in April $91,107.64 from what was generated last year.

The general fund, which is funded through a one-half-cent sales tax and a population-based turnback from the county’s one-cent sales tax, funds city operations and Russellville’s various departments, such as the police and fire departments.

A one-cent, voter-approved sales tax in effect between 2008-13, which primarily funds street department projects — such as the North Phoenix and South Detroit projects — has also taken a hit, but the department is spending funds received last year, and this year’s generated revenue will be used toward projects next year, McKaughan said.

McKaughan said the decrease in funds in April may have been caused by a decrease of money residents received from income taxes.

“I don’t think people got as much income tax money back to spend, or they haven’t gotten it back yet,” he said.

McKaughan and Pope County Judge Jim Ed Gibson attributed the overall decline in sales tax revenue to rising gas prices — an expenditure that contributes no funds to the city or county.

“The price of fuel’s escalating, and when the price of fuel gets up ... it really takes a toll on people spending money for other things,” Gibson said. “You fill up a tank for $40 and then it jumps to $70, that $30 could have been spent on something else that you were going to pay a sales tax on, because we don’t get any sales tax on that gasoline. That’s one of the main contributors.”

McKaughan told the council Tuesday the city will need to either cut back on its expenditures or begin using money from the city’s reserve fund, which as of the beginning of the year contained $1.2 million.

While Gibson said he expects the sales tax revenue to regain, McKaughan said he expects the sales tax revenue to continue to decrease.

“I’m hoping it’s not going to be a trend, but I’m thinking it will be,” McKaughan said.

The Russellville City Council agreed to discuss the budget at a future council meeting.